Services: Steel Manufacturing
Location: Middleburg, Mpumalanga
Zindonga Trading and Projects is a 100% black women-owned steel components manufacturing company with clients such as Eskom and several mines forming part of its portfolio. The business wasan incubatee at the Mpumalanga Stainless Initiative a Seda-supported incubator.
When the business – which is owned by Phuti Gwedegwe – applied for the Seda Technology Transfer Fund programme, they only had small tools and the rest of the equipment they used and relied on belonged to the incubator. The lack of necessary equipment and resources also led to them outsourcing some functions.
Outsourcing was costly to the business affecting profitability, it also affected turn-around times with jobs that should have taken between 4-5 days to complete taking 4-5 weeks. Quality control was also difficult to manage while the focus was on improving leading times. Due to the businesses' limited capability it was unable to access jobs from big corporates.
Through Seda's Technology Transfer Fund Zindonga Trading and Projects was supplied with the necessary equipment that would improve their operations and capabilities, such as a lathe, milling machine, radial drill and a compressor.
The equipment received compelled the business to move to their own premises, building credibility for the business in the eyes of future clients. The equipment also allowed them to do all the jobs they had previously outsourced, leading to improved quality control and lead times. The business was able to demonstrate its capabilities to potential clients which resulted in them gaining more jobs from big corporates.
Zindonga Trading and Projects experienced a 450% increase in turnover from R1-million to R5.5million per annum. The business also received an influx of work which led to them outgrowing their equipment, and is currently in the process of applying for a development loan in order to expand and increase capacity.